Klondex Mines Provides August Update on Fire Creek Project; Ships Lot #2 to Newmont
Date : 09/30/2013 @ 8:19AM
Source : OTC Markets
Stock : Klondex Mines Ltd. (QX) (KLNDF)
Quote : 1.36 0.0 (0.00%) @ 3:24PM
Klondex Mines Provides August Update on Fire Creek Project; Ships Lot #2 to Newmont
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Klondex Mines Provides August Update on Fire Creek Project; Ships Lot #2 to Newmont
Klondex Mines Provides August Update on Fire Creek Project; Ships Lot #2 to Newmont
RENO, NV and VANCOUVER, BC--(Marketwired - Sep 30, 2013) - Klondex Mines Ltd. (TSX: KDX) (OTCQX: KLNDF), a Nevada gold exploration and development company, today provides an update on its toll milling and underground development programs, as well as the results of the metallurgical test-work from its Fire Creek Project in Lander County, Nevada.
Toll Milling
Toll milling of Fire Creek's Lot #1 is complete (see press release dated September 23, 2013). Final receivables for Lot #1 totaled $1,967,176, sold at an average gold spot price of US $1,332/oz. Processing of Lot #1 included 1,055 dry tonnes (1,165 dry tons) at an average head grade of 50.7 g/t (1.48 opt) Au.
Toll milling of Lot #2, comprised of 1,812 tonnes (2,000 tons), started on September 18, 2013.
Paul Huet, Klondex President and CEO stated, "Continuing to toll mill and treat our second lot of material from the Fire Creek project is an important step moving forward. We are very fortunate to have multiple options (Newmont and Veris agreements) in place to treat the Fire Creek material. Through toll milling, we are able to better understand the metallurgical characteristics of the Fire Creek material, and the proceeds can be applied towards future exploration and development."
Underground Development
Over the past four months, Klondex's underground development program targeting the Joyce and Vonnie structures within the Main Zone of its Fire Creek project has yielded 4,375 tonnes (4,824 tons) of mineralized material averaging 63.7 g/t (1.86 opt) Au. Development on the Joyce (5370N and 5400S) structure in August consisted of 192 samples taken and submitted for assay. Gold grades ranged from 0.2 g/t Au to 486 g/t Au (0.005 opt Au to 14.172 opt Au) over a vein width ranging from of 0.1 m to 1.3 m (0.2 ft to 3.5 ft). For May - July development results please see press releases dated June 13, 2013, July 29, 2013 and September 12, 2013.
The average grade from the development program is 43% higher than the recent mineral resource estimate average grade (see press release dated September 16, 2013).
Metallurgy
Metallurgical test-work was conducted by McClelland Laboratories (MLI Job #3834), an independent laboratory based in Sparks, Nevada, on two samples taken from the underground development to determine the amenability of the Fire Creek material to gravity/cyanidation treatment. Composite sample FCM1 was taken from material stockpiled during the development of the 5400 and 5370 crosscuts. Sample 3834-01 was generated by compositing coarse assay rejects from the face sampling on the Joyce 5400 N.
Each sample was milled to 80%-212?m (65 mesh) and processed through a Knelson concentrator to determine precious metal recovery via gravity concentration. The tailings from the Knelson concentrator were reground to 80%-75?m (200 mesh). Bottle roll tests were then performed on the tailings to determine precious metal recovery via cyanidation. Results of the test-work are shown in the tables below.
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Table 1. - Combined Metallurgical Results, Gravity/Cyanidation Tests, Fire Creek Metallurgical Samples,
80%-212?m Feed (Grav.), Reground to 80%-75?m (CN)
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